The Australian Dollar saw a rise of 0.65% against the US Dollar on Thursday due to positive market sentiment and strong US economic data. The US Dollar Index fell by 0.27% following the Federal Reserve’s decision to keep rates steady and signal a slower Quantitative Tightening. Fed Chair Powell emphasized a data-dependent policy in light of slow inflation progress.
Australia’s Judo Bank Services PMI disappointed investors with a reading of 53.6, down from 54.2 and missing estimates. Traders of AUD/USD are now awaiting US labor data, including Nonfarm Payrolls and Unemployment Rates.
The AUD/USD pair currently trades at 0.6567, up by 0.03%. The Federal Reserve’s decision and Powell’s comments are being digested by traders. The US Balance of Trade reported a deficit narrowing to $-69.4 billion, slightly below expectations. Other data showed improvements in Factory orders and a rise in unemployment benefit claims.
Looking ahead, traders are waiting for the release of the Judo Bank Services PMI Final reading for April and the US Nonfarm Payrolls for the same month. Technical analysis of AUD/USD suggests a neutral bias, with key levels to watch for potential movements in the pair.
Factors influencing the Australian Dollar include interest rates set by the Reserve Bank of Australia, the price of Iron Ore (a major export), the health of the Chinese economy (Australia’s largest trading partner), inflation, growth rate, and Trade Balance. Market sentiment also plays a role in the currency’s value.